A firm's expansion path
A) shows the targeted growth rate in sales over the long run.
B) is the same thing as its long-run average cost curve.
C) is a curve that shows a firm's cost-minimizing combination of inputs for every level of output, holding input prices constant.
D) is a curve that shows expected profits at various price levels.
C
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Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
Corrective taxes differ from most taxes in that corrective taxes
a. reduce economic efficiency. b. do not raise revenue for the government. c. do not cause deadweight losses. d. always result in a high burden on sellers of goods to which the corrective tax applies.
Under a policy of average-cost pricing, a monopolist must charge the price at which its ________ cost curve intersects its ________ curve.
A. marginal; demand B. average variable; demand C. marginal; marginal revenue D. average; demand
Economies of scale throughout the range of market demand give natural monopolies
a. downward-sloping long-run average cost curves b. upward-sloping long-run average total cost curves c. upward-sloping long-run average cost curves d. upward-sloping short-run average total cost curves e. horizontal long-run average cost curves